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We think it's important to understand the basics of investment and terms you've probably heard, but might not know what they mean. Below are a list of commonly used terms, phrases and jargon.
What are stocks?
Shares of stock are pieces of ownership of a corporation. The idea behind owning shares is to participate in the growth and profits of the company. A company first issues shares through an initial public offering — IPO. The IPO makes the founders of the business rich and generates capital – money – the company can use to grow its business. Investors make money as stock prices increase and the companies pay dividends.
Stock Exchanges
The New York Stock Exchange – NYSE – and the NASDAQ are ...